Admission to AIM and JSE and First Day of Dealings

RNS Number : 3287J

Kore Potash PLC

29 March 2018

 

NOT FOR RELEASE, DISTRIBUTION OR PUBLICATION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN OR INTO, THE UNITED STATES OF AMERICA, CANADA, THE REPUBLIC OF SOUTH AFRICA OR JAPAN OR ANY JURISDICTION WHERE TO DO SO MIGHT CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OR REGULATIONS OF SUCH JURISDICTION.

Kore Potash Plc

("Kore Potash" or the "Company")

Admission to trading on AIM and JSE and First Day of Dealings

Kore Potash, the potash exploration and development company whose flagship asset is the Kola Project ("Kola" or the "Project"), located within the Company's 97%-owned Sintoukola Potash Project in the Republic of Congo, is pleased to announce that its ordinary shares will be admitted to trading on the AIM Market of the London Stock Exchange ("AIM") effective 8:00am (GMT) today, under the ticker KP2.

The Company will also be admitted on the main board of the Johannesburg Stock Exchange ("JSE") today through a concurrent secondary listing of its ordinary shares. The listing on AIM and JSE is in addition to the Company's existing listing on the Australian Stock Exchange and follows the Company's re-domicile to the United Kingdom in 2017.

The Directors believe that the admission of the Company's issued share capital to trading on AIM and the JSE will increase its international profile and the market's general awareness of Kore Potash.

The Company's Admission Document is available on the Kore Potash website: https://www.korepotash.com/.

Canaccord Genuity Limited ("Canaccord") is acting as the Company's Nominated Advisor and sole Broker in relation to the AIM listing.

Highlights

·     Kore Potash has gross JORC compliant combined Measured, Indicated and Inferred potash Mineral Resource of 5,953 million tonnes (Mt) at an average grade of 22.0% KCl, hosted by two potash deposits, the Kola Deposit and the Dougou Deposit² (Table 1) as reported under JORC 2012¹;

·     The Company's most advanced project, Kola, is host to a large tonnage, high-grade, shallow deposit with a Measured and Indicated sylvinite resource of 508Mt grading 35.4% KCl³;

·     A Definitive Feasibility Study ("DFS") is at an advanced stage and is scheduled for completion towards the end of Q2 or early Q3 2018.  The DFS is being conducted by a consortium of world class engineering and construction companies⁴;

·     The DFS is for a project designed to produce 2 million tonnes per annum of MoP (the saleable form of potassium chloride);

·     In addition, Kore Potash discovered further high grade sylvinite at the nearby Dougou Extension Prospect, including two drill-holes intersecting 57% and 60% KCl over a thickness of 4.5 and 4.2 m respectively⁵;

·     Strong Board and management team with FTSE100 and industry experience; and

·     The Company is supported by two large cornerstone investors; SQM, the Chilean lithium and potash producer; and SGRF, the Oman Sovereign Wealth Fund.

The total number of Ordinary Shares with voting rights in the Company with effect from Admission is 859,234,443. This figure may be used by shareholders as the denominator for the calculations by which they determine if they are required to notify their interest in, or change of their interest in, the Company under the FCA's Disclosure Guidance and Transparency Rules.

Sean Bennett, CEO, commented that:

"Today marks an exciting milestone for Kore Potash as we announce our admissions to the AIM market of the London Stock Exchange and the JSE as an advanced stage potash exploration and development company.

We are firmly on track to forge ahead with the next stages of project development in terms of financing and construction and the forthcoming publication of our DFS will give us the final economic parameters of this exciting project.

The Company aims to be among the world's lowest-cost potash producers due to our project's favourable location to the coast, the large size, high-grade, and shallow depth of the deposit.

Added to this, there is significant opportunity to add more sylvinite; at both Kola and Dougou Extension we have intersections of what we believe to be among the highest grading potash seam globally, averaging 60% KCl, highlighting the longer term opportunity for all stakeholders."

ENDS

For further information, please visit www.korepotash.com or contact:

Kore Potash Sean Bennett - CEO		Tel: [phone]
Tavistock Communications Jos Simson Edward Lee		Tel: [phone]
Canaccord Genuity - Nomad and Broker Martin Davison James Asensio		Tel: [phone]
Fivemark Partners Michael Vaughan		Tel: [phone]

Footnotes

1 - Australasian Code for reporting of Exploration Results, Mineral Resources and Ore Reserves, Joint Ore Reserves Committee (JORC) 2012 edition

2 - Announcement dated 9 February 2015: Elemental Minerals Announces Large Mineral Resource Expansion and Upgrade for the Dougou Potash Deposit. 

3 - ASX Announcement dated 6 July 2017: Updated Mineral Resource for the High Grade Kola Deposit

4 - ASX Announcement dated 28 February 2017: World-Class Engineering And Construction Consortium To Deliver Kola Definitive Feasibility Study

5 - ASX Announcement dated 11 September 2017: Dougou Extension Prospect Sylvinite intersections up to 8.8 m thick within a zone of 8 by 5 km, open laterally

About Kore Potash's Projects

Kore Potash (ASX: KP2, AIM: KP2 and JSE: KP2) is an advanced stage mineral exploration and development company whose primary asset is 97%-owned Sintoukola Potash S.A. (SP) in the RoC. SP has 100% ownership of the Kola Mining Lease within which the Company's lead project, the Kola Sylvinite deposit, is located. SP also has 100% ownership of the Dougou Mining Lease within which the Dougou Carnallitite Deposit and the Dougou Extension Prospect are situated.

These projects are easily accessed, being located approximately 80 km to the north of the city of Pointe Noire and within 30 km from the Atlantic coast. The Projects have the potential to be among the world's lowest-cost potash producers and their location near the coast offers a transport cost advantage to global fertilizer markets.

The Kola Deposit has a Measured and Indicated Sylvinite Mineral Resource of 508 Mt grading 35.4% KCl, hosted by three potash seams within approximately 300 m of surface. A Definitive Feasibility Study (DFS) is underway, being conducted by a consortium of world class engineering and construction companies consisting of Technip FMC, Vinci Construction Grands Projects, Egis International and Louis Dreyfus Armateurs (the "French Consortium"). The DFS contract was signed on 28 February 2017 and the study is scheduled to be completed late Q2 or early Q3 2018.

The Dougou Deposit is a very large Carnallitite deposit with a Measured and Indicated Potash Mineral Resource of 1.1 billion tonnes grading 20.6% KCl, at a depth of between 400 and 600 metres, hosted by 35-40 metres of Carnallitite within 4 flat-lying seams. A Scoping Study was completed by ERCOSPLAN of Germany in February 2015. This Study indicated that a low capital cost, low operating cost (Life of Mine operating cost of US$68 per tonne MoP), and quick to production carnallite solution mine could be established at Dougou, taking advantage of the deposit quality and availability of low cost energy in the RoC.

The Dougou Extension Prospect (previously referred to as Yangala) lies immediately west of Dougou. in 2012 and 2014 the Company drilled 2 holes, both intersecting a flat-lying layer of thickness 4.2 to 4.5 metres with a grade of between 57 and 60% KCl. Drilling of 4 additional holes in 2017 intersected Sylvinite of between 27 and 63% KCl over a range of thicknesses.

Directors and Senior Management

David Hathorn - Non-Executive Chairman

Mr. Hathorn joined the Group as non-executive Chairman in November 2015. He was the Chief Executive Officer of Mondi group between 2000 and May 2017 having joined the group in 1991. The Mondi group is an international packaging and paper group employing around 25,000 across more than 30 countries listed on the London Stock Exchange and the Johannesburg Stock Exchange. Prior to the demerger of Mondi from Anglo American PLC, Mr. Hathorn was a member of the Anglo American group executive committee from 2003 and an executive director of Anglo American PLC from 2005, serving on several of the boards of the group's major mining operations.

Sean Bennett - Chief Executive Officer

Mr. Bennett joined the Group as CEO in November 2015. He was previously CEO of UBS South Africa. He joined SG Warburg in London in 1995 (now UBS Investment Bank). He moved to South Africa in 2008 with HSBC, where he was Co-Head of HSBC Global Banking for Africa before re-joining UBS in 2011. Mr. Bennett has over 20 years' experience in advising a wide range of companies, state owned enterprises and Governments, including a number of large mining houses such as BHP, South32 and Sibanye. He has been involved in transactions around the globe as well as numerous countries across Africa.

Jonathan Trollip - Non-Executive Director

Mr. Trollip joined the Group in April 2016. Mr. Trollip is a globally experienced Director (both executive and non-executive) with over 30 years of commercial, corporate, governance and legal and transactional expertise. He is currently Non-Executive Chairman of ASX listed Global Value Fund Ltd, Future Generation Investment Company Ltd, Spicers Limited, Plato Income Maximiser Ltd, Spheria Emerging Companies Ltd and Antipodes Global Investment Company Ltd and a non-executive director of Propel Funeral Partners Limited. He also holds various private company directorships in the commercial and not-for-profit sectors.

Leonard Math - Non-Executive Director

Mr. Math joined the Group in April 2014. Mr. Math graduated from Edith Cowan University in 2003 with a Bachelor of Business majoring in Accounting and Information Systems. He is a member of the Institute of Chartered Accountants. In 2005 he worked as an auditor at Deloitte before joining GDA Corporate as Manager of Corporate Services. He has extensive experience in relation to public company responsibilities including ASX and ASIC compliance, control and implementation of corporate governance, statutory financial reporting and shareholder relations within both the retail and institutional sectors. He is currently the Company Secretary of ASX listed Gulf Manganese Corporation.

David Netherway - Non-Executive Director

Mr. Netherway joined the Group in December 2017. Mr Netherway is a mining engineer with over 40 years of experience in the mining industry. He was involved in the construction and development of the New Liberty, Iduapriem, Siguiri, Samira Hill and Kiniero gold mines in West Africa and has mining experience in Africa, Australia, China, Canada, India and the Former Soviet Union. Mr Netherway served as the CEO of Shield Mining until its takeover by Gryphon Minerals. Prior to that, he was the CEO of Toronto listed Afcan Mining Corporation, a China focused gold mining company that was sold to Eldorado Gold in 2005. He was also the Chairman of Afferro Mining which was acquired by IMIC in 2013. Mr Netherway has held senior management positions in a number of mining companies including Golden Shamrock Mines, Ashanti Goldfields and Semafo Inc. Mr Netherway is currently the Chairman of AIM-listed Altus Strategies plc, ASX-listed Canyon Resources Ltd and TSX-V listed Kilo Goldmines Ltd, and a non-executive director of TSX and AIM listed Avesoro Resources Inc. He also holds various private company directorships.

Timothy Keating - Non-Executive Director

Mr. Keating joined the Group in November 2016 following the completion of the strategic investment in the Group by SGRF. Mr. Keating is Head of Mining Investment Private Equity at SGRF, a sovereign wealth fund of the Sultanate of Oman. Prior to joining SGRF in 2015, Mr Keating was CEO of African Nickel Limited, a nickel sulphide development company where he grew the business through several acquisitions, project development and fund raisings. He also worked at Investec Bank for the Commodities and Resource Finance Team (2004 - 2010) and at Black Mountain Mine owned by Anglo American plc, in South Africa. He is a Non-Executive Director of Kenmare Resources plc.

Pablo Altimiras - Non-Executive Director

Mr. Altimiras joined the Group in November 2016 following the completion of the strategic investment in the Group by SQM. Mr. Altimiras is an Industrial Civil Engineer from the Pontificia Universidad Católica de Chile where he also earned an MBA. He joined SQM during 2007 as Chief of Logistics Projects and in 2009 was promoted to Regulatory Affairs Director. In 2010 he assumed the position of Business Development vice manager and after two years took up the position of Development and Planning manager. In 2016 he was appointed Vice-President of Development and Planning. Mr. Altimiras is also board member of Minera EXAR, an Argentinian company currently developing a lithium project in Jujuy Province, Argentina and a board member of SQM Australia Pty Ltd, a SQM subsidiary that is developing a lithium project in Western Australia

Senior Management 

John Crews - Chief Financial Officer

Mr. Crews joined the Group in March 2017. Mr. Crews graduated from the University of the Orange Free State in Bloemfontein, South Africa in 1994, and after completing his articles with KPMG in Johannesburg, qualified as a Chartered Accountant in 1997. After spending a number of years working in London, he joined UBS in Johannesburg where he was the Chief Financial Officer and Chief Operating Officer of UBS South Africa. Mr. Crews was also responsible for UBS' finance function across MENA, Israel, Turkey and Nigeria and served on a number of boards across the region.

Gavin Chamberlain - Chief Operating Officer

Mr. Chamberlain was recently appointed as the Company's Chief Operating Officer, joining the Group in October 2017. Mr. Chamberlain has over 30 years' experience in the mining sector in various roles including managing director, civil engineer, project director, project manager and project sponsor. Most recently, Mr. Chamberlain was Regional Director of Amec Foster Wheeler's Africa Mining business. Prior to that, Mr. Chamberlain was Commercial Director and Project Delivery Officer at Basil Read and its subsidiary, TWP Holdings. Mr. Chamberlain holds a Graduate Diploma of Engineering from the University of Witwatersrand and a Bachelor of Science (B.Sc, Civil Engineering) from the University of Natal.

Julien Babey - Business Development and Head of Country

Mr. Babey has been the managing director of Sintoukola SA since 2012 and has moved to a business development role in the Group while continuing to serve on the board of the Congolese entity. Previously, Mr. Babey was the managing director of AREVA Group's registered entities in Mongolia, developing a uranium in-situ leaching project. Mr. Babey joined Areva in 2003 (previously COGEMA) and worked in several divisions of the group as legal counsel and has led legal teams in the mining division in France and in regional offices in Southern Africa as well as served on several of the boards of the group's mining operations in West, Central and Southern Africa. He began his career with SAP France followed by the French Development Bank based in Morocco where he started to be exposed to discussions with public officials for infrastructure projects. He holds a Master of Law (LL.M.) in Comparative Business Law from the City University in Hong Kong and a Master of Law (LL.M) in Business & Taxation Law as well as an Accounting & Financial Management Certificate from the University of Aix-en-Provence in France.

Important notice

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.

This announcement does not constitute an offer of securities for sale or subscription in any jurisdiction. Investors should not subscribe for or purchase any securities referred to in this announcement except in compliance with applicable securities laws and on the basis of information in the admission document (the "Admission Document") published by the Company in connection with the admission of its ordinary shares to trading on AIM, a market of London Stock Exchange plc (the "London Stock Exchange"). Copies of the Admission Document are available from the Company's website at www.korepotash.com.

This announcement does not constitute or form part of, and should not be construed as, an offer to sell or issue, or a solicitation of any offer to buy or subscribe for, any securities in any jurisdiction, nor should it or any part of it form the basis of, or be relied on in connection with, any contract or commitment whatsoever.

This announcement is only addressed to, and directed at, persons in member states of the European Economic Area who are "qualified investors" within the meaning of Article 2(1)(e) of the Prospectus Directive (Directive 2003/71/EC, as amended, including by Directive 2010/73/EU, to the extent such amendments have been implemented in the relevant Member State and including any relevant implementing measure in the relevant Member State) ("Qualified Investors"). In the United Kingdom, this announcement is directed only at Qualified Investors (i) who are persons having professional experience in matters relating to investments who fall within the definition of "investment professionals" in Article 19(5) of The Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the "Order"), or (ii) persons who are high net worth bodies corporate, unincorporated associations and partnerships and the trustees of high value trusts, as described in Article 49(2) of the Order, and other persons to whom it may lawfully be communicated. Under no circumstances should persons of any other description rely or act upon the contents of this announcement.

Canaccord, which is authorised by the Financial Conduct Authority, is acting exclusively for the Company and for no-one else in relation to Admission, and will not be responsible to any other person for providing the protections afforded to its clients nor for providing advice in connection with the matters contained in this announcement.

No representation or warranty, express or implied, is or will be made as to, or in relation to, and no responsibility or liability is or will be accepted by Canaccord or any of its affiliates, partners or agents (or any of its directors, officers, employees or advisers), as to or in relation to, the contents, accuracy or completeness of this announcement or any other written or oral information made available to or publicly available to any interested party or its advisers, or any other statement made or purported to be made by or on behalf of Canaccord or its affiliates in connection with the Company or the Placing, and any liability therefor is expressly disclaimed.

Forward-Looking Statements

This news release contains statements that are "forward-looking". Generally, the words "expect," "potential", "intend," "estimate," "will" and similar expressions identify forward-looking statements. By their very nature and whilst there is a reasonable basis for making such statements regarding the proposed placement described herein; forward-looking statements are subject to known and unknown risks and uncertainties that may cause our actual results, performance or achievements, to differ materially from those expressed or implied in any of our forward-looking statements, which are not guarantees of future performance. Statements in this news release regarding the Company's business or proposed business, which are not historical facts, are "forward looking" statements that involve risks and uncertainties, such as resource estimates and statements that describe the Company's future plans, objectives or goals, including words to the effect that the Company or management expects a stated condition or result to occur. Since forward-looking statements address future events and conditions, by their very nature, they involve inherent risks and uncertainties. Actual results in each case could differ materially from those currently anticipated in such statements.

Investors are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date they are made.

Competent Person Statement

The information relating to Exploration Targets, Exploration Results, Mineral Resources or Ore Reserves, and the results of economic studies, is extracted from previous reports, as referred to in footnotes herein, and available to view on the Company's website. The Company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcements and, in the case of estimates of Mineral Resources or Ore Reserves, that all material assumptions and technical parameters underpinning the estimates in the relevant market announcement continue to apply and have not materially changed. The Company confirms that the form and context in which the Competent Person's findings are presented have not been materially modified from the original market announcement.

Table 1. The Company's Gross Potash Mineral Resources.

	Resource Category	Million Tonnes	Grade KCl %	Contained KCl
Kola Sylvinite Deposit	Measured	216	34.9	75
	Indicated	292	35.7	104
	Measured + Indicated	508	35.4	180
	Inferred	340	34.0	116
	TOTAL	848	34.8	295
Kola Carnallitite Deposit	Measured	341	17.4	59
	Indicated	441	18.7	83
	Measured + Indicated	783	18.1	142
	Inferred	1,266	18.7	236
	TOTAL	2,049	18.5	378
Dougou Carnallitite Deposit	Measured	148	20.1	30
	Indicated	920	20.7	190
	Measured + Indicated	1,068	20.6	220
	Inferred	1,988	20.8	414
	TOTAL	3,056	20.7	634
TOTAL MINERAL RESOURCES	Measured	705	23.3	165
	Indicated	1,653	22.8	377
	Measured + Indicated	2,358	23.0	542
	Inferred	3,594	21.3	766
	TOTAL	5,953	22.0	1307

Notes: The Mineral Resources attributable to Kore Potash is 97% of the above, reflecting Kore Potash's 97% holding of Sintoukola Potash. The Mineral Resource estimates are reported in accordance with the JORC code 2012 edition. The Kola Mineral Resources were reported on the 6 July 2017, and was prepared by Met-Chem division of DRA Americas Inc., a subsidiary of the DRA Group. Resources are reported at a cut-off grade of 10% KCl. The Dougou Mineral Resource was prepared by ERCOSPLAN Ingenieurgesellschaft Geotechnik und Bergbau mbH ("ERCOSPLAN") and reported in the ASX announcement dated 9 February 2015. The form and context of the Competent Person's findings as presented in this document have not materially changed since the resource was first reported. Mineral Resources which are not Mineral Reserves do not have demonstrated economic viability. The estimate of Mineral Resources may be materially affected by environmental, permitting, legal, marketing, or other relevant issues. The Mineral resources are considered to have reasonable expectation for eventual economic extraction using underground mining methods.

GLOSSARY

The following technical terms shall have the following meanings in this document, unless the context requires otherwise:

carnallite	an evaporite mineral, being hydrated potassium magnesium chloride, with the chemical formula of KCl·MgCl2·6(H2O)
carnallitite	an evaporite rock consisting primarily of the minerals carnallite and halite and possible lesser quantities of sylvite, halite and insoluble materials such as clays, anhydrite, and dolomite
DFS	a definitive feasibility study, which is a comprehensive study of a mineral deposit in which all geological, engineering, legal, operating, economic, social, environmental and other relevant factors are considered in sufficient detail that it could reasonably serve as the basis for a final decision by a financial institution to finance the development of the deposit for mineral production
Evaporite/s	rock/s formed by the evaporation of hypersaline brines, for the most part comprised of chloride and sulphate minerals
H2O	water
Indicated Mineral Resource	that part of a Mineral Resource for which quantity, grade or quality, densities, shape and physical characteristics can be estimated with a level of confidence sufficient to allow the appropriate application of technical and economic parameters to support mine planning and evaluation of the economic viability of the deposit. The estimate is based on detailed and reliable exploration and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes that are spaced closely enough for geological and grade continuity to be reasonably assumed
Inferred Mineral Resource	that part of a Mineral Resource for which quantity and grade or quality can be estimated on the basis of geological evidence and limited sampling and reasonably assumed, but not verified, geological and grade continuity. The estimate is based on limited information and sampling gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes
K2O	potassium oxide, a measurable unit used in the analysis and marketing of fertilisers that contain different potassium compounds, as a comparison of their relative potassium content
KCI	potassium chloride; pure (100%) potassium chloride is equivalent to 63.178% K2O
km²	square kilometres
m	Metres
Measured Mineral Resource	part of a Mineral Resource for which quantity, grade or quality, densities, shape and physical characteristics are so well established that they can be estimated with confidence sufficient to allow the appropriate application of technical and economic parameters, to support production planning and evaluation of the economic viability of the deposit. The estimate is based on detailed and reliable exploration, sampling and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes that are spaced closely enough to confirm both geological and grade continuity
Mineral Reserve	the economically mineable part of a Measured or Indicated Mineral Resource demonstrated by at least a preliminary feasibility study. This study must include adequate information on mining, processing, metallurgical, economic and other relevant factors that demonstrate, at the time of reporting, that economic extraction can be justified. A mineral reserve includes diluting materials and allowances for losses that may occur when the material is mined
Mineral Resource	a concentration or occurrence of natural solid inorganic or fossilised organic material in or on the earth's crust in such form and quantity and of such a grade or quality that it has reasonable prospects for economic extraction. The location, quantity, grade, geological characteristics and continuity of a mineral resource are known, estimated or interpreted from specific geological evidence and knowledge, including sampling
MoP	muriate of potash (comprises a minimum of 95% KCl)
Mt	million tonnes
Mtpa	million tonnes per annum
potash	the common name given to a group of potassium-bearing minerals and various mined and manufactured salts containing potassium
sylvinite	an evaporite rock consisting primarily of the minerals sylvite and halite and possible lesser quantities of sylvite, halite and insoluble materials such as clays, anhydrite, and dolomitez
sylvite	an evaporite mineral, the natural mineral form of potassium chloride (KCl)

 

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